Which of the following expenditures would be included in GDP for this year? a. The purchase...

Question

Question

Which of the following expenditures would be included in GDP for this year?

	a.	The purchase of a new tire by General Motors for a new car.
	b.	The purchase of an intermediate good.
	c.	The purchase of a used car.
	d.	The purchase of a new car.

Answer 1

Answer #1

Answer

Option d

The purchase of a new car

the tire is an intermediate good and it is not added into the GDP

GDP is a sum of all the final goods and services produced with a country and a period

the final good is new care as it is used for consumption.

Answer 2

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